More Fallout from the Target and Neiman Marcus Data Breaches

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More Fallout from the Target and Neiman Marcus Data Breaches

As the numbers of people and retailers hit by the data breach at Target, Neiman Marcus, and likely other retailers who have not yet come forward are increasing, credit card issuers are tightening the reins to help mitigate the risk of fraud.  JP Morgan Chase recently issued a statement to their customers informing them of lower daily limits for charges on certain cards.  If a card reaches the daily limit, the decline code will come back as a  Do Not Honor decline code.  Recycling strategies for these codes during this time could change.  Since the limit will reset the next day, that account will likely be approved the following morning.

Tracking decline recycling and recovery success is going to be increasingly important in coming months.  Flexibility to change the rules will also be key for recurring billing CNP merchants.  As the investigation into the Target data breach continues, and the affected population increases, it is very likely other banks will also implement temporary credit limits or other fraud filters that could impact your recurring business.

Stay tuned for updates on best practices as the landscape shifts.


By | 2014-01-20T20:44:13+00:00 January 20th, 2014|Categories: Blog Post|Tags: , , |0 Comments

About the Author:

Melanie Stout began her career at Synapse Group nearly 20 years ago, blazing the trail for continuous service magazine subscriptions. After Synapse Group, she successfully built and launched the first direct-to-consumer recurring revenue stream at Prior to PLC, Melanie was Vice President of Marketing and Communications for a SaaS-based healthcare IT company. She has combined her knowledge of the subscription economy with B2C, B2B, and B2P marketing, to help companies of all sizes increase conversions, improve retention, and reduce operating costs. Melanie has participated as a panelist at the CNP Expo and as a moderator at the Subscription Insider event, Mastering Payment Processing for Recurring Revenue.